QF profit to fall 90% - shares falling

[markis10]

Share price reflects what the market believes the company is worth divided by the number of shares on offer. Qantas has close to 2.3billion shares on offer, even BossReggies numbers don't register as a blip on the radar. You would need FF to purchase SIGNIFICANT amounts of shares to have an effect on the shareprice, then in turn these flyers would need to do the BIS miles to give $ back to the airlines - on top of what they're already spending.

My actual point was that the only way QF get money from shares is when they issue even more shares onto the market.

I was looking at ways to get more people to fly QF and rewarding the shareholders at the same time, its hypothetical but interesting to contemplate, having a shareholders package that offered value/discounts could entice a lot of retail investors to buy in, a couple of million making a purchase would be positive and noticable, especially given they are down 26.5c now.

 

[bossreggie]

Share price reflects what the market believes the company is worth divided by the number of shares on offer. Qantas has close to 2.3billion shares on offer, even BossReggies numbers don't register as a blip on the radar.

Totally agree....

But when I sell MY shares @ $2.16... The $10Mill profit (EBIT) WILL register on the BR radar!!

Boss

 

[SeatBackForward]

Totally agree....

But when I sell MY shares @ $2.16... The $10Mill profit (EBIT) WILL register on the BR radar!!

Boss

BR, I think you show up on a lot of radars around here too.

 

[SeatBackForward]

I was looking at ways to get more people to fly QF and rewarding the shareholders at the same time, its hypothetical but interesting to contemplate, having a shareholders package that offered value/discounts could entice a lot of retail investors to buy in, a couple of million making a purchase would be positive and noticable, especially given they are down 26.5c now.

Woolworths, an equally comparable Australian business icon, used to have a shareholder discount too. But they found out that the 5% discount they gave to shareholders, meant that you had a fair hit to revenue, from shareholders who ultimately did not drive the share value up.

 

[NM]

Totally agree....

But when I sell MY shares @ $2.16... The $10Mill profit (EBIT) WILL register on the BR radar!!

Boss

But how long are you willing to wait? By the time the radar "blips", it may be well hidden by years of waiting ....

 

[moa999]

Almost all Australians are shareholders (by virtue of their superannuation accounts which are generally diversified portfolios and given Qantas's position in the index would be included)
Why should you get a special discount just because you hold directly in your name rather than via a super account.

 

[bossreggie]

But how long are you willing to wait? By the time the radar "blips", it may be well hidden by years of waiting ....

There are some that won't earn $10Mill in a lifetime... I will be ok if it takes a few years.

It's not like I'm going to have to do anything!!

Boss

 

[markis10]

Almost all Australians are shareholders (by virtue of their superannuation accounts which are generally diversified portfolios and given Qantas's position in the index would be included)
Why should you get a special discount just because you hold directly in your name rather than via a super account.

Shareholders benefits are always given to residents for that reason, who hold xx shares in their own name, quite a few companies do it, such as NAB, and of course if your a sydney airport shareholder you get free parking at SYD (or used to)!

 

[NM]

There are some that won't earn $10Mill in a lifetime... I will be ok if it takes a few years.

It's not like I'm going to have to do anything!!

Boss

I am working on my second million .... I gave up on the first one

 

[serfty]

... But they found out that the 5% discount they gave to shareholders, meant that you had a fair hit to revenue, from shareholders who ultimately did not drive the share value up.

Probably more than a little in that the 5% discount did not assist the Institutional shareholders.

 

[oz_mark]

Woolworths, an equally comparable Australian business icon, used to have a shareholder discount too. But they found out that the 5% discount they gave to shareholders, meant that you had a fair hit to revenue, from shareholders who ultimately did not drive the share value up.

Quite a few companies used to have shareholder programs, but they do seem to have decreased in number in recent years.

 

[smit0847]

There are some that won't earn $10Mill in a lifetime... I will be ok if it takes a few years.

It's not like I'm going to have to do anything!!

Boss

Good grief you must be wealthy!

 

[SeatBackForward]

Perhaps what Qantas could do is to provide a special "Shareholders" discount to shareholders, who attend their AGM, as part of the tax deduction shareholders are entitled to under Australian Tax law. This way it might encourage those minor shareholders who wouldn't normally attend, an incentive to spend extra $ on QF that they otherwise would not have.

 

[drron]

Only the Greens, TWU MP's & the QF sale act!

Nothing in the Qantas sale act stopping this as long as it is done by an Australian gordon gecko.
TWU-I doubt our aussie gordon gecko would give a damn.
The Greens-well they should be jumping for joy with all that CO2 being taken out of our atmosphere.
And JB would be backing him all the way.

 

[markis10]

Nothing in the Qantas sale act stopping this as long as it is done by an Australian gordon gecko.
TWU-I doubt our aussie gordon gecko would give a damn.
The Greens-well they should be jumping for joy with all that CO2 being taken out of our atmosphere.
And JB would be backing him all the way.

Hmm, each share now has a net asset value twice the share price.....

 

[NM]

Sitting in the BNE J Lounge and the TV screens were showing a graphic of the QF share price over the last few days ... classic

 

[rechoboam]

Hmm, each share now has a net asset value twice the share price.....

Are you implying they are a good buy?

It depends whether the assets are tangible like airplanes or intangibles like the logo recognition, maybe landing slots (?tangible), and I have no idea how QFF comes into that and what happens to the value of the QFF business if the airline ceased to run. And whether assets like airplanes (if they aren't leased) are realizable with any certainty is another question. Just a few things to think about.

 

[markis10]

Sitting in the BNE J Lounge and the TV screens were showing a graphic of the QF share price over the last few days ... classic

Which has been recorded and will be played on loop for days in the VA lounge :mrgreen:

 

[markis10]

Are you implying they are a good buy?

It depends whether the assets are tangible like airplanes or intangibles like the logo recognition, maybe landing slots (?tangible), and I have no idea how QFF comes into that and what happens to the value of the QFF business if the airline ceased to run. And whether assets like airplanes (if they aren't leased) are realizable with any certainty is another question. Just a few things to think about.

Not implying anything other than the lower they go (share price) the more attractive assets will become to the raiders as mooted earlier in the thread, who have the experience to understand the true value of the asset register in various scenarios.

 

[rechoboam]

Not implying anything other than the lower they go (share price) the more attractive assets will become to the raiders as mooted earlier in the thread, who have the experience to understand the true value of the asset register in various scenarios.

Even if an airline goes into administration someone can always buy it. I'm interested by the continued health of the domestic business.